ResMed (NYSE:RMD) shares declined 5.5% in premarket trading after the medical device manufacturer reported fourth-quarter fiscal 2026 results that delivered an earnings beat but fell slightly short on revenue. Investors were also disappointed by the company’s first full-year financial outlook, which pointed to slower growth in fiscal 2027.
While profitability exceeded expectations, a softer revenue forecast and several near-term headwinds weighed on market sentiment.
Earnings Beat Overshadowed by Revenue Shortfall
ResMed reported non-GAAP earnings of $2.95 per share for the quarter, an increase of 16% from a year earlier and above analysts’ consensus estimate of approximately $2.89.
Revenue reached $1.46 billion, narrowly missing Wall Street expectations of around $1.47 billion.
Although the quarterly performance remained solid overall, investors focused on the company’s more cautious outlook for the year ahead.
First Full-Year Guidance Signals Slower Growth
ResMed forecast core revenue growth of between 5% and 7% for fiscal 2027, below the 8% constant-currency growth achieved during fiscal 2026.
Management said the outlook includes an estimated $75 million revenue headwind related to a field safety action involving its Astral ventilator product range.
The company also noted that the planned sale of its MatrixCare software business and the recently completed $340 million acquisition of Noctrix Health are both expected to dilute earnings per share during the coming financial year.
Analysts Reduce Price Targets
Following the earnings release, several investment banks, including RBC Capital and Wells Fargo, lowered their price targets for ResMed shares, reflecting the more moderate growth outlook.
The broader US equity market remained relatively stable, with the S&P 500 trading broadly flat and the Nasdaq posting modest gains, indicating that ResMed’s decline was driven primarily by company-specific developments.
Growth Concerns Pressure the Stock
Ahead of the earnings announcement, a company director sold approximately $1.8 million worth of shares at $225 each under a pre-arranged trading plan. While such transactions are generally viewed as routine, the sale added to investor attention surrounding the stock.
The combination of a modest revenue miss, slower fiscal 2027 growth expectations, the anticipated impact of the Astral safety action and a fresh round of analyst price target reductions prompted investors to reassess ResMed’s near-term outlook, sending the shares lower in premarket trading.
ResMed stock price
